‘Too Little Too Late’: Bankruptcy Booms Among Older Americans

A study conducted by the Consumer Bankruptcy Project has determined that the rate of people 65 and older filing for bankruptcy is three times what it was in 1991. This frightening statistic is attributed to the rising costs of medical care, vanishing pensions, and inadequate savings as well as a shift from government and employers bearing financial risk to individuals, who are bearing an ever-greater responsibility for their own financial well-being as the social safety net shrinks.

A small stumble can create the fall that leads an older American to feel it necessary to file for bankruptcy. Bankruptcy can offer a fresh start for people who need one, but for older Americans it “is too little too late,” the study says. “By the time they file, their wealth has vanished and they simply do not have enough years to get back on their feet.”

Cheryl Mcleod of Las Vegas filed for bankruptcy in January after struggling to make her mortgage and medical bills. “I am 70, and I am working for less money than I ever did in my life,” she said. “This life stuff happens.” Ms. Mcleod said she hoped that filing for bankruptcy would help her catch up on her mortgage so she could stay in her home. “I am too old to move out of here,” she said. “I am trying to stay stable.”

See Tara Siegel Bernard, ‘Too Little Too Late’: Bankruptcy Booms Among Older Americans, New York Times, August 5, 2018.